Defective Allowance definition
Defective Allowance means a discount granted by a manufacturer to a retailer as a result of defective merchandise received by the retailer and pursuant to which, the retailer also retains the merchandise.
Defective Allowance. A [**]% of Standard Wholesale Price Defective Allowance ("DFA") to be deducted by Distributor. The DFA deduction will be adjusted to the actual Defective Return Percentage ("DFP") at the end of every calendar quarter. Product can be returned to Vendor or Destroyed On-Site ("DOS"). Retailers that DOS defective product rather than return defective product to Distributor will receive 100% credit. Vendor may audit the product in Distributor's warehouse prior to DOS within 15 days of receiving written notice from Distributor. Retailer DOS audit based on retailer claim summaries which generally indicate the product title, retailer SKU, and quantity. Catastrophic Defect: Regular DFA does not cover catastrophic defective product. Catastrophic defined as a DFP greater than [**] percent ([**]%) of gross purchases on a title-by-title basis. Catastrophic includes product with substandard packaging. Market Development Funds ("MDF"): [**]% of Standard Wholesale Price will be deducted by Distributor on a per unit basis for costs associated with the marketing and merchandising of each Title. Vendor understands they will be approached to participate in various programs on a case-by-case basis. New Store Allowance("NSA"): [**]% of Standard Wholesale Price will be deducted by Distributor for all products ordered by Retailer for new store opening inventory (initial new store order only). The NSA applies only to the products ordered by the new store for the specific new store only. Returned Product Fee: [**]% of Standard Wholesale Price deduction will be deducted by the Distributor for each unit of Vendor's inventory returned by the Retailer ("Retailer Returns"). Vendor agrees to provide Distributor with a completed Product Submission Form Addendum (Exhibit A) for each Product shipped to the Retailer prior to this agreement by anyone other than the Distributor. Upon return from the Retailer of Product sold to Retailer by anyone other than the Distributor: 1. Distributor shall have the right to return Vendor's Products to Vendor and receive full credit for the value of the Standard Wholesale Price only for the number of units returned to the Distributor by the Retailer that exceed the number of units that Distributor shipped to the Retailer.
Defective Allowance means the agreed DFI or chargeback accrual percentage of net purchases in lieu of Best Buy’s right to return Defective Products.
Examples of Defective Allowance in a sentence
The Defective Allowance percentage may vary from year to year and from department to department.
The cost reflected on the import purchase order is the first cost which includes the Defective Allowance at a set percentage as indicated above.
More Definitions of Defective Allowance
Defective Allowance. A [**]% of Standard Wholesale Price Defective Allowance ("DFA") to be deducted by Distributor. The DFA deduction will be adjusted to the actual Defective Return Percentage ("DFP") at the end of every calendar quarter. Product can be returned to Vendor or Destroyed On-Site ("DOS"). Retailers that DOS defective product rather than return defective product to Distributor will receive 100% credit. Vendor may audit the product in Distributor's warehouse prior to DOS within 15 days of receiving written notice from Distributor. Retailer DOS audit based on retailer claim summaries which generally indicate the product title, retailer SKU, and quantity. Catastrophic Defect: Regular DFA does not cover catastrophic defective product. Catastrophic defined as a DFP greater than [**] ([**]%) of gross purchases on a title-by-title basis. Market Development Funds ("MDF"): [**]% of Standard Wholesale Price will be deducted by Distributor on a per unit basis for costs associated with the marketing and merchandising of each Title. Vendor understands they will be approached to participate in various programs on a case-by-case basis. New Store Allowance ("NSA"): [**]% of Standard Wholesale Price will be deducted by Distributor for all products ordered by Retailer for new store opening inventory (initial new store order only). The NSA applies only to the products ordered by the new store for the specific new store only. Returned Product Fee: [**]% of Standard Wholesale Price will be deducted by the Distributor for each unit of product returned by the Retailer ("Retailer Returns").